DOGE experienced a surge in value following the Twitter logo change, but the token has now dipped after rising recession fears. The masses believe that the meme coin is displaying signs of a deeper correction. The lack of proper fundamentals behind the latest surge in the value of DOGE, coupled with increased enthusiasm among a number of traders suggests that the meme coin might soon be due for a correction.
Traders have piled into bullish bets behind DOGE, including the open interest in DOGE perpetual futures, shooting up to approximately $600 million by Thursday. Overwhelming bullish bets for the token are on the higher side. At the same time, the funding rate of the meme coin is currently in a positive zone. As long as funding rates are concerned, their use ensures that the spot price of a token matches the price of future contracts.
High open interest, bundled with skewed funding rates of DOGE inevitably suggests that the market is lopsided. Furthermore, this makes it evident that if a correction was to happen, it would certainly be a bloodbath if the prices continue to swing against bullish traders. At the time of writing, DOGE is down by 8.21% in the previous 24 hours, pushing the trading price as shown on coinmarketcap down to approximately $0.08983. The total market cap of the meme coin is $12 billion.
DOGE Is not the Only Crypto to Suffer
Apart from DOGE losing its momentum, Bitcoin has also managed to slip below the $28K mark. Other losing cryptos include Ethereum, Cardano, and many more. However, Ethereum edged slightly lower but still displayed decent weekly gains as the Shanghai upgrade draws near.
The US equities were subject to mixed trading sentiments on Wednesday, as a great slowdown was observed in the job market and services. However, the slowdown inevitably led to the development of increasing fears among investors regarding the upcoming recession. As a result of these fears, the total crypto market cap dipped by approximately 0.95% in the previous 24 hours to $1.19 trillion. The trading volume during that period was subject to a minor increase of 0.14% to $43.08 billion.
Crypto Traders Believe Shiba Inu-Themed Tokens Are Useless
In other news, a considerable number of crypto traders have started to believe that tokens based on the Shiba Inu dog breed are pretty much useless. Therefore, tokens inspired by the dog breed might be subject to increased selling after days of outperforming the crypto market. Soon after Elon Musk changed the logo of Twitter with that of Dogecoin, the price of other Shiba Inu-inspired cryptos increased as well.
Tokens with greater market caps, including SHIB, rose by almost 10%, whereas the ones with lower market caps, notably, FLOKI, KISHU, etc, increased by almost 25%. However, such increases are less likely to hold their ground for extended periods of time, as most of them are losing pace.